Select the one term that best fits each definition.
-A letter issued by a bank guaranteeing that a named individual or business will be paid a specified amount, provided stated conditions are met.
A) bill of lading
B) distribution of net income statement
C) exports
D) imports
E) letter of credit
F) liquidation of a partnership
G) partnership agreement
H) realization
I) time draft
J) trade acceptance

Question

Quizplus · Accepted Answer

A letter of credit is a financial document issued by a bank that guarantees a buyer's payment to a seller will be received on time and for the correct amount. It is used in international trade to ensure that payment will be received where the buyer and seller may not know each other personally and are operating in different countries.

Select the One Term That Best Fits Each Definition